Evidence of meeting #10 for Government Operations and Estimates in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was i've.

A video is available from Parliament.

On the agenda

Members speaking

Before the committee

Joël Lightbound  Minister of Government Transformation, Public Works and Procurement
Reza  Deputy Minister, Department of Public Works and Government Services
Lee  Associate Professor, Sprott School of Business, Carleton University, As an Individual
Ryder  Associate Professor, Marketing and Entrepreneurship, DeGroote School of Business, McMaster University, As an Individual

4 p.m.

Liberal

Pauline Rochefort Liberal Nipissing—Timiskaming, ON

Yes, and I personally, actually, think the same thing. I'd like to add that to that comment.

Certainly, what I have found is that, of the citizens with whom I've spoken, they basically understand the need for change. I think the communication has been in such a manner that people understand, yet I have many seniors and rural communities that want to make sure that there will be continued service and a Canada Post that moves forward. Basically, I've heard the term, “It's a vital organization,” and no one disputes that. The need for change is understood, as is the fact that it is a vital organization that needs to survive. Those views are equally very present, I find, in my community.

At the same time, people appreciate that we're in a digital world that's changing very quickly, so I'd like to hear your thoughts on how you view the role of Canada Post in the future, in this digital economy in which we live.

4 p.m.

Liberal

Joël Lightbound Liberal Louis-Hébert, QC

First off, I'd like to thank your constituents. Now, I'm reassessing. Of course, my riding is the best, but I would argue that yours is the second best now.

It goes to answer the previous question from MP Boulerice, and it's in line with Commissioner Kaplan's report. In my mind, if we are to talk about Canada Post's future and how it can evolve in the next 10 to 20 years, it first has to be efficient at its primary mission, which is connecting Canadians, delivering mail, delivering parcels and delivering services in rural and remote communities.

I think the work of this committee certainly will be useful in looking at what could be done with Canada Post in the long term, but in the short and medium terms, it's important for us, if we are to be responsible, to stop the bleeding, given that Canada Post is currently losing $10 million per day. It reported its worst quarter in history in Q2 of this year.

I think Canadians are on board with this transformation. They realize that the world has changed. As you mentioned, it has gone digital at such a fast pace—and COVID accelerated that—that Canada Post needs to adapt. It cannot be stuck in a business model that was designed for the 1990s. It needs to adapt to today's reality.

One other thing you mentioned, Madame Rochefort, which is near and dear to my heart and is important for the government, for Canada Post and for Canadians as we transition to community mailboxes, is that it's essential that Canadians with mobility issues still have access. The accommodation program, which may not be as well known as it should be, has to be fully advertised, so that all Canadians have access to a reliable postal service.

4 p.m.

Liberal

Pauline Rochefort Liberal Nipissing—Timiskaming, ON

It's interesting, because I was going to do a test in my community about the accommodation program in the months to come, to understand exactly how it works so that I can convey it to the citizens who are in need of that service.

Quickly, could you say a few words on the impact that you've seen on the business community?

4 p.m.

Liberal

Joël Lightbound Liberal Louis-Hébert, QC

When the postal workers were on strike before Christmas of last year, you could definitely feel the impact on small businesses. I think it goes to show how essential a service Canada Post provides, in particular, to small businesses.

To this point, I'll just reiterate what I've said many times, but I'm hoping it doesn't fall on deaf ears: Both for management and the union, we need to find an agreement, and the sooner, the better. Finding an agreement between both parties will lift the uncertainty that has plagued Canada Post and its revenues, and it will offer the kind of certainty that small businesses need as they operate.

Pauline Rochefort Liberal Nipissing—Timiskaming, ON

Thank you. I'll leave my 30 seconds to Monsieur Boulerice.

4:05 p.m.

Conservative

The Chair Conservative Kelly McCauley

We'll have Madame Gaudreau for two and a half minutes, and perhaps the 30 seconds from Ms. Rochefort.

Marie-Hélène Gaudreau Bloc Laurentides—Labelle, QC

I'd like to look a bit further down the road, the medium term, say.

I imagine you're familiar with the German postal model. In the 1990s, Germany decided to let the company DHL absorb the country's postal service. That makes me think of Canada Post and Purolator. A lot of people are thinking the same thing.

Will you commit here and now to not weakening Canada Post by having Purolator take it over?

Joël Lightbound Liberal Louis-Hébert, QC

Absolutely.

Canada Post and Purolator have very different missions. Canada Post has a universal service obligation, a service obligation to rural and remote communities.

Since the announcement, I have often been asked why we haven't privatized Canada Post. To me, that's unthinkable, considering the essential service that the corporation offers. Canada Post needs to be financially viable and sustainable. That is why these changes were announced.

Lifting the moratorium and allowing mail delivery on the weekends will give Canada Post more flexibility. The population will receive service that is not only essential, as per Canada Post's mission, but also competitive when it comes to parcel delivery. Everyone will benefit.

We'll see how negotiations go and whether the union and management can come to an agreement.

Marie-Hélène Gaudreau Bloc Laurentides—Labelle, QC

I'm still very worried, because the competition is fierce.

This is my first time on the Standing Committee on Government Operations and Estimates, but for years, my predecessors have told me about all sorts of studies on the subject, and we're still talking about it.

Since September 25, conversation has dramatically increased. There's talk about reducing costs. Everyone agrees that Canada Post provides an essential service, so let's focus on how to deal with the competition. If Canada Post can't deliver a parcel to someone's home and they have to walk to pick it up or drive an hour to get it, they will turn to a competitor that can. I understand community mailboxes are not an hour away, but people want fast and efficient service.

How are we going to get there?

The Chair Conservative Kelly McCauley

Give a brief answer, please.

Joël Lightbound Liberal Louis-Hébert, QC

Canada Post's network is its strength, but also its weakness. It's about finding a balance.

4:05 p.m.

Conservative

The Chair Conservative Kelly McCauley

Ms. Jansen, go ahead, please.

4:05 p.m.

Conservative

Tamara Jansen Conservative Cloverdale—Langley City, BC

Minister, Canadians rely on Canada Post not just for their mail, but also for their everyday needs. It is used for things like prescriptions and small business deliveries. It keeps our communities connected.

Canada Post has been saying for years that its hands are tied by government rules. Why has this government waited until now to save a system that's clearly been broken for years?

Joël Lightbound Liberal Louis-Hébert, QC

Let me first congratulate you on your French skills. It is honestly admirable, and I thank you.

I would say two things. First, a lot has changed over the last 10 years. I've already mentioned that the volume of letters has gone down and that Canada Post's financial situation has gotten worse. Now more than ever, the changes announced are not only important, but also reasoned and justified.

Second, since the April 28 election, our government has shown that it is ready to make responsible and sometimes hard but courageous decisions to ensure a sustainable future for Canada Post, and I'm really proud of our government for that.

4:10 p.m.

Conservative

Tamara Jansen Conservative Cloverdale—Langley City, BC

You've been in the government for 10 years as an MP and as a parliamentary secretary, and the problems at Canada Post didn't appear just yesterday. Why sound the alarm now? Canadians are wondering, if everyone at the table saw warning lights flashing, why it took a decade for anyone in cabinet to grab the wheel.

Joël Lightbound Liberal Louis-Hébert, QC

As I've highlighted, the reality has changed over the last 10 years. If you look back to 10 years ago, when the moratorium on community mailboxes was imposed, the volume of letter mail was not the same. The financial situation of Canada Post was not the same. I think now, more than ever, these changes are warranted to put the corporation on a more sustainable financial footing.

As I have mentioned, in hindsight, if you look back, I think these changes were warranted in many instances. I think it's good that we're moving forward now, and I'm glad that I'm part of a government that's willing to make difficult decisions, to show political courage and to move forward with these changes that we announced on September 25.

4:10 p.m.

Conservative

Tamara Jansen Conservative Cloverdale—Langley City, BC

I don't want to run out of time. I have one question for Ms. Reza.

Our committee recently reviewed the ombud's “bait and switch” report, and it raised some tough questions.

PSPC is changing how contracts are awarded, moving from a task-based system to one more focused on corporate capacity. That's a big shift, and people are very concerned. They're worried about what it means for fairness and outcomes.

Would you be willing to return to committee so we can take a closer look at those changes together and make sure that Canadians are getting real value for their money?

Jenna Sudds Liberal Kanata, ON

On a point of order, Chair, I'm just wondering if we are straying off the topic of today's meeting, which is Canada Post.

4:10 p.m.

Conservative

The Chair Conservative Kelly McCauley

We always allow a very wide latitude, a wide berth, for questions, so I'm fine with it.

I'll restart the clock.

Go ahead.

Arianne Reza Deputy Minister, Department of Public Works and Government Services

Thank you very much for the invitation.

As it happens, I'm coming back to committee next week, and I will be staying for an additional hour. Perhaps that will work for the committee. Otherwise, at your convenience, we'd be happy to come back to talk about some of the changes, why we're putting them in, and from a vendor performance management perspective, how it's going to work with SMEs.

Thank you.

Joël Lightbound Liberal Louis-Hébert, QC

I'm coming back as well, so please feel free to send us your questions in advance, and we'll be well prepared.

Some hon. members

Oh, oh!

4:10 p.m.

Conservative

Tamara Jansen Conservative Cloverdale—Langley City, BC

Really quickly, leadership means acting before a crisis, not after. After 10 years in and around the cabinet table, I guess we're wondering why Canadians should believe that suddenly today there's the political will to fix the problem that your government helped to create.

Joël Lightbound Liberal Louis-Hébert, QC

As I've mentioned, the reality has changed. The world has evolved, and I think the pandemic accelerated many of those changes that we're discussing today, whether it's the decline in letter mail volume or the digitalization of our lives. That warrants the changes that we announced on September 25.

I thank William Kaplan for his report, which is a very thorough report. It outlines the immediate steps that need to be taken to stabilize the financial situation of Canada Post. I'm proud to be part of a government that's moving forward with the recommendations in the Kaplan report.

4:10 p.m.

Conservative

The Chair Conservative Kelly McCauley

Thank you very much.

We'll go to Ms. Sudds, please.